Why more entrepreneurs are turning to VGTs for added revenue—and how it could work for you.
For Illinois small business owners who are constantly looking for ways to increase revenue and grow customer engagement, video gaming terminals (VGTs) have proven to be a winner. Whether you’re looking to diversify your current business model or launch a brand-new venture, adding video gaming can be a smart, low-maintenance way to generate extra income–from the machines themselves, to gaming loyalty programs designed to keep customers happy and encourage repeat visits.
Here are some of the small business types that are already benefiting from VGTs—and how they’re using that extra revenue to grow their businesses.
Bars & Restaurants: Boost Loyalty, Dwell Time, and Profits
Bars and restaurants are ideal candidates for video gaming. In a competitive industry with notoriously thin margins, the added revenue from VGTs can be a game-changer. Not only can VGTs increase profits but those profits can be used to benefit all customers–gamers and non-gamers alike–and keep them coming back. Here are a few ways bars and restaurants can benefit from video slots:
- Prevent high failure rates. It’s no secret that the bar and restaurant industry has a high failure rate. And, it’s hard work. By installing VGTs, bars and restaurants can immediately introduce a consistent revenue stream. In fact, the average VGT-equipped business earned $9,300 in gross gaming revenue according to the IGB in April of 2024.
- Use profits for upgrades. Just about every bar and restaurant owner wants to invest back into their business. The problem is, upgrades can be large expenditures. With added revenue from VGTs, bars and restaurants can upgrade kitchens, decor, infrastructure, entertainment equipment and more.
Increase dwell time and retention. VGTs are proven to increase dwell time for bars and restaurants. As customers stay longer, they tend to spend more on food and drinks, increasing overall revenue for the establishment owners. In many cases, bars and restaurants that offer video gaming see significant upticks in both customer retention and check averages.
Gaming Cafes: Build a Business Around Video Gaming
For bars and restaurants that host VGTs, food and drink content is king. Posts featuring limited-time specials or new menu items consistently get strong Gaming cafes are a fast-growing business format perfect for entrepreneurs. Built entirely around VGTs, gaming cafes offer a consistent revenue stream with a relatively low cost of entry compared to many other business ventures.
- Create a new revenue model. Most entrepreneurs look to diversify their income sources to lower risk and increase the chances for maximum profitability. Gaming cafes are a great option for newcomers due to ease of operation, and for existing business owners to supplement other revenue streams.
- Benefit from a built-in customer base. A consistent worry for entrepreneurs is finding a customer base, and retaining them. Gaming cafe patrons are actively seeking opportunities to play, and they often remain loyal to establishments that offer a fun, clean and inviting atmosphere.
Opportunities for cross-promotion. Those with existing businesses have an excellent opportunity to cross-promote in a captive environment such as a gaming cafe. For new business owners, the gaming cafe can be a great springboard for a future business.
Convenience Stores & Liquor Stores: Drive Traffic and Sales
Convenience stores and liquor stores often rely on high foot traffic and customer loyalty. VGTs give customers a reason to visit, to stay longer—and spend more.
- Increase foot traffic. Offering a unique service that nearby competitors may not have will always draw interest from passersby. VGTs will often draw more foot traffic as customers look to get more from their visit to the local convenience store.
- Upsell products. Like bars and restaurants, VGTs increase dwell time for patrons. This means more opportunities for players to grab snacks, drinks, or lottery tickets before or after playing. It all adds up to increased revenue.
Encourage return visits and loyalty. Having fun is contagious! Making your store one way for patrons to have a little fun as part of their regular routine encourages repeat visits and customer loyalty.
Truck Stops: Increase Dwell Time and Serve More Drivers
Truck stops are naturally a transient business, meaning that they must find ways to attract customers and encourage repeat visits. VGTs do both, while offering an added revenue boost.
Differentiate your stop. There is no shortage of truck stops and filling stations on the road. Differentiation is key. VGTs alone can provide an advantage, particularly when the titles are updated, and the gaming area is well-kept. Gaming loyalty programs help, too.
Boost profits. When drivers take breaks they are not just looking to fuel up, have a meal and relax. They are also looking for a little entertainment. VGTs offer a quick form of entertainment for people on the go and a steady stream of income for truck stop owners.
Increase dwell time. Drivers have a schedule to stick to but they are also required to take breaks. VGTs are a great option to pass the time, especially for overnight drivers or long-haul travelers.
Landromats: Turn Wait Time into Play Time
Laundromats are another underrated location for VGTs. While customers wait on laundry cycles, they often look for ways to pass the time.
- Increase revenue per square foot. With a small footprint, VGTs are a great way to add a revenue stream without taking away usable space.
- Build customer loyalty. Traditionally, there is little to differentiate one laundromat from another. Adding an exciting form of entertainment creates a compelling reason to choose your laundromat over another, and to encourage repeat customers.
Create a more inviting atmosphere. Although laundromats might not be high on most people’s lists as places to spend quality time, VGTs are a great way to turn a chore into a fun experience.
Salons & Smoke Shops: Boost Loyalty and Revenue
Salons and smoke shops are increasingly exploring VGTs to create more engaging environments for their customers and to add new revenue streams.
- Drive repeat visits. The more frequently customers visit your location, the more products and services you are likely to sell. VGTs offer an entertainment incentive for customers and prospects to visit more often.
- Increase cross-sell opportunities. The longer a customer stays in your establishment, the better the chances they will shop. Snacks, drinks and other items in your salon or smoke shop are all opportunities to drive more revenue when customers spend more time at the location.
Differentiate your business. Salons and smoke shops are some of the more crowded industries in retail. Offering an added entertainment option can go a long way toward differentiating your business from the competition.
Why It Works: Video Gaming as a Revenue Multiplier
Whether you’re a new entrepreneur or a seasoned small business owner, VGTs are more than a side hustle—they’re a dependable, scalable revenue source. And when you work with the right Terminal Operator, they provide more than just machines. They offer marketing, service, support, and strategic insights that help you maximize your earnings.
Ready to Explore the Opportunity?
If you’re considering adding video gaming to your business—or switching from your current Terminal Operator to one that’s more aligned with your goals—let’s talk. The right partner can help you navigate regulations, customize your setup, and unlock new potential for your business.
Video gaming isn’t about chance—it’s about opportunity. And now’s the time to take it.
